05 October 2023
Considerations for buying an investment property
What to consider when looking for an investment property
If you are considering buying your first investment property, or adding to your existing portfolio, remember these five important factors to help you make an informed decision.
1. Location, location, location
Ensure you thoroughly check out the local area. Check crime rates, unemployment statistics, road and rail accessibility, and projected population growth.
Our Maidenhead town centre development, Waterside Quarter, offers the perfect location for investment. Road and rail links are excellent with Maidenhead train station being just a short walk from Waterside Quarter and offering a direct service into London Paddington in just 19 minutes. Additionally, the Crossrail Elizabeth line runs through Maidenhead providing direct trains into the heart of the city. The M4 is approximately a 5-minute drive away providing access to both the M40 and M25.
Maidenhead is the safest major town in Berkshire and has a 20% lower crime rate than the national average 1. The Royal Borough of Windsor and Maidenhead has a low level of unemployment at 3% compared to that national average of 3.6%2.
2. Number of rental properties in the area
Speak to local letting agents to see the average time it takes to let a similar property to the one you are considering purchasing.
Look on Rightmove to see how many rental properties are available.
If there are a high number of properties available, is there anything that sets the property you are considering apart from others?
In Maidenhead our the lettings team at our selling agent, Roger Platt, are experts on the local rental market and are always happy to provide advice to potential investors.
Our Waterside Quarter properties are unique in that they sit alongside the rejuvenated waterways and in the heart of the new restaurant quarter.
3. Average rents in the area
Does the monthly rental value meet your expectations and will it cover your monthly mortgage repayments and other associated costs?
A 2-bedroom apartment in Maidenhead town centre within the restaurant quarter is generating a monthly rental in the region of £2,200. Based on a purchase price of £425,000 for a 2-bedroom at Waterside Quarter that provides a gross rental yield of 6.2% (between 5-8% is a good yield).
4. Amenities
Being close to shops, cafes and restaurants generally increases the desirability of a property. Is there a well-equipped local shop providing everyday essentials within a short walk of the property.
Waterside Quarter is within the restaurant quarter of the town which is home to artisan café, Bakedd, restaurants Coppa Club, El Cerdo, Sauce and Flour, Bardo Lounge and many others. There is also an F45 gym within the quarter. The development is a few minutes' walk from Waitrose, Sainsburys, M&S, Boots and a number of other high street retailers.
5. Future growth
Is there potential for value to be added to the property due to predicted future growth in the area. Is the area subject to regeneration plans - is the area 'up and coming' or 'on the way down'.
Maidenhead town centre is currently undergoing an exciting regeneration with planning granted for a large, new shopping centre.
